Businesses

The Inflation Reduction Act (IRA) expands opportunities for Iowa businesses to take advantage of cost-saving tax credits to generate and store clean energy, electrify fleet vehicles, and to reduce energy waste.

Businesses

The Inflation Reduction Act (IRA) expands opportunities for Iowa businesses to take advantage of cost-saving tax credits to generate and store clean energy, electrify fleet vehicles, and to reduce energy waste.

Available Programs & Grants

Renewable Energy

Investment Tax Credit for renewable generation (Before 2025)

30% investment tax credit for solar, small wind, geothermal, fuel cell, microturbine, combined heat and power, waste energy recovery, energy storage technology, and biogas constructed before January 1, 2025.  
Key Dates
Funds Available
Responsible Agency
Additional Information

Production Tax Credit for renewable generation (Before 2025)

Production tax credit of 1.5 cents/kilowatt hour (inflation adjusted to 2.6 cents / kwh) for solar, geothermal, wind, closed- and open-loop biomass, landfill gas, municipal solid waste, hydropower, and marine and hydrokinetic facilities.
Key Dates
Funds Available
Responsible Agency
Additional Information

Emissions-based Investment Tax Credit (2025 and after)

30% technology neutral investment tax credit replaces Section 48 with an emissions-based investment tax credit that is neutral and flexible between clean electricity technologies. Taxpayers choose between a PTC (45Y) and an ITC (48E). 
Key Dates
Funds Available
Responsible Agency
Additional Information

Emissions-based Production Tax Credit (2025 and after)

Technology neutral production tax credit replaces Section 45 with an emissions-based production tax credit that is neutral and flexible between clean electricity technologies. Credit of 1.5 cents/kwh (inflation adjusted projected at 2.8 cents/kwh). Taxpayers choose between a PTC (45Y) and an ITC (48E).
Key Dates
Funds Available
Responsible Agency
Additional Information

Bonus credits for investment tax credits and production tax credits

Under the Inflation Reduction Act, ITC and PTC projects may be eligible for “adder” or bonus credits for projects meeting certain requirements. See additional details for criteria.
Key Dates
Responsible Agency
Additional Information

Energy Efficiency

Energy Efficient Commercial Building Deduction

Building owners can get a section 179D tax deduction for new construction and retrofits to commercial buildings. The energy efficiency improvements, including lighting, envelope design, and heating and cooling, must reduce the energy consumption by a minimum of 25% when compared to a building that meets the minimum requirements of Reference Standard 90.1 of the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE).
Key Dates
Funds Available
Responsible Agency
Additional Information

New Energy Efficient Home Credit

Builders and contractors of single-family and manufactured homes can collect a credit for meeting the Energy Star Program requirements and the DOE Zero Energy Ready Home criteria. Builders and contractors of multifamily homes can collect a credit for each Energy Star-compliant unit or Zero Energy Ready Home-compliant unit.
Key Dates
Funds Available
Responsible Agency
Additional Information

Electric Vehicles

Commerical Clean Vehicle Credit

A $7,500 tax credit tax for the purchase of electric vehicles or other qualified clean vehicles for commercial vehicles under 14,000 lbs. and a $40,000 tax credit for commercial vehicles over 14,000 lbs. Additional information coming soon.
Key Dates
Funds Available
Responsible Agency
Additional Information

Tools & Resources

Investment Tax Credits and Production Tax Credits

Under the IRA, owners of renewable energy projects will be able to choose between an Investment Tax Credit (ITC) or Production Tax credit (PTC). An ITC reduces the cost of installing clean technologies, while PTCs credit project owners for the production of their clean technologies. Stand-alone storage is only eligible for the ITC. For greater detail on the timelines and credit amounts, see the linked tables:
ITC & PTC TABLES
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Disclaimer: Nothing in this summary should be interpreted as tax or legal advice.